The GBP/JPY bounces about 193.00 while the dollar extends its losses

• The GBP/JPY can be seen despite a feeling of the attenuated market in the midst of commercial tensions between the US and China.
• China responded by imposing a 15% tariff on the imports of coal and US LNG; and an additional 10% tariff to crude oil.
• The JPY could gain ground due to the increase in the probabilities of new rises from the Boj.

The GBP/JPY cross approaches 193.00 during the European session on Tuesday after recovering their daily losses. The crossing gained support as investors’ confidence improved after the decision of the president of the United States, Donald Trump, to delay tariff plans on Canada and Mexico, weakening the demand of Japanese Yen (JPY) as a safe refuge .

However, the GBP/JPY rise is limited, since the signs of uncertainty and the growing commercial tensions between the US and China could have driven the flows to the JPY as a safe refuge. This follows the imposition of tariffs by China’s Ministry of Finance on American products, including crude oil, agricultural equipment and cars, in immediate retaliation to the Trump 10% tariff on Chinese imports.

However, the expectations of new rates of rates by the Bank of Japan (BOJ) could attract buyers. The summary of Boj’s opinions indicates that those responsible for the policy discussed the possibility of additional increases in rates, reinforced by the increase in the underlying inflation of Tokyo at its fastest annual rate in almost a year. This reinforces the case for greater hardening of the Boj’s policy, offering some support to the JPY.

The GBP/JPY crossing could be depreciate since the sterling pound (GBP) could face risks due to the expectations that the Bank of England (BOE) reset its cycle of flexibility of politics, probably cutting the interest rates in 25 basic points (BPS) up to 4.5% on Thursday.

Operators anticipate a moderate position of the Bank of England in the midst of inflation deceleration signs, despite the accelerated growth of wages in the United Kingdom (UK). The monetary policy committee (MPC) of the BOE 8-1 Vote in favor of a quarter quarter to 4.5%is expected, with a member, with a member probably advocating to keep the current rates by another meeting.